Home Inspection and Warranty Questions

[Shellie]

It's time for me to schedule our one-year warranty walk-through. I know of several issues I plan to point out and get fixed. I happened to get an ad in the mail for a home inspection company that does new home inspections. They make a pretty good case for having an independent inspection prior to our home's first year warranty being up. It would be $270.

Also, I am considering buying extended warranties for our appliances. Through GE I could cover the micro, both refrigerators, range and dishwasher for 5 years for around $600 and I think I can make interest-free payments on that. Also, our AC company has a $500 five year AC warranty and since we live in the land of frequently breaking AC units (we are often at 115+ for at least a month) I am considering it. We've already had 4 service calls on this AC unit b/w moving in last April and September and they did finally replace the compressor.

I normally don't believe in extended warranties but after renting for several years and never worrying about repair costs, I'm a little nervous to think that we could have a $750 AC repair one month and a $150 appliance service call the next. Especially since our cars are getting older (2003 and 55k and 2002 and 115k) and we have more car maintenance and repair expenses than we used to.

And as far as the inspection goes, I would really love to have someone who's NOT working for the builder tell me whether or not we have enough insulation, etc.

Thoughts ?

[lucyem]

My DH was a home inspector for quite some time. He always recommended an inspection on a brand new house. Always found just as many issues on a new house as he did an old one. He usually worked with people buying new homes before they bought and then right before the 1 year mark as all part of the same contract. I would recommend it but make sure you hire an inspector with some experience and so forth. There are national associations you can search on their web sites and check references. You do not need one who specializes in new homes, just a good one.

[zebra15]

$1370 for warranties and inspections?
I live in AZ and IDK.... I would probably go for the home inspection and pass on the warranties. 5 yrs isnt that long. I was in my home 5 yrs and didnt have any appliance issues nor did my neighbors. If you do buy the warranty I would read it, really read it and see what it covers and what it excludes. Many times they repair and dont replace the appliance or what you think is a problem really isnt etc.

[SleeplessMommy]

I would skip the appliance warranty. For the ac warranty, read the fine print closely.

[Shellie]

thanks mamas!!

[annekevdbroek]

Have to agree on skipping the appliance warrenties. $600 is a lot - and often if one would die you could replace it off craigslist for way less than $600. In 15+ years of home ownership I've had very few appliance problems.

The A/C one may be worth it - depending on what it covers - because the repairs can be very costly. If it had 5 services calls in a year I'd consider seriously if it is old and just needs to be replaced.

What do the do in this $270 inspection?

[Shellie]

For this inspection, they check everything from foundation to attic, electrical, plumbing, measure insulation, make sure everything is up to code, etc.

It does seem like the appliance warranties are pricey. I already have a problem with my dishwasher...the warranty is up in 2 weeks so I have to get it looked at ASAP (it's just under a year old).


How about a home warranty for $40/month? It seems like a pretty good deal (covers a lot including maintenance and termites, which are common here) but there is a $59 co-pay for each claim and this is only for a year. They take monthly payments though.

So $40/mo to never have to pay more than $59 for *anything* that goes wrong, including plumbing, electrical, any appliance, termite infestion, etc? I know some home warranty companies are awful but this one has local offices and guarantees quick turn-arounds.

The last house we were in, we were renting it. It was only 2 years old when we moved in and in the 2 years we were there, the owners had to service the fridge twice, the dishwasher twice and the second time, it was more expensive to fix than replace, the A/C FIVE times (there were two), the water heater completely died and was replaced, the oven (the board was fried after a self-cleaning cycle!) which was a double wall oven so the repair was about $750 and replacement was about $750 and also something with the plumbing. They had a warranty through Old Republic and OR was very slow getting us service and there was a $99 fee for every service call.

So now that we own our own house again, I am really worried about getting stuck with similar repair bills. This company that I got a quote from guarantees 24 hr. service on emergency items (A/C in summer, hot water--we were without hot water for NINE days in the rental!--, etc.) and 72 hr service on regular calls.

[zebra15]

I think you need to take a look at the big picture.
1. what is the quality and level of appliances that you have. do you have basic entry level appliances or did you upgrade them? If you have entry level they are not going to last, espically in az. We have horrible water (that alone is going to be rough on the dishwasher, etc).
2. for the warranty service your defination of emergency is probably different than the warranty service. make sure you get clarification of that before signing anything
3. $40/month plus $59 per call? Thats $480 year min....(480$ can get you a new dishwasher, more than a new water heater, etc)
4. I owned my home for 5 yrs and really never had any issues with appliances, a/c etc. I had upgraded appliances and did regular maintance to everything.
5. My view is the warranty plan is there for the warranty company to make money.
Just my 2c.....

[Shellie]

You do bring up good points.

We have a water softener so hopefully that minimizes that sort of damage to the dishwasher.

The dishwasher is not upgraded. The range/micro are (not top of the line but close). We have two fridges--a basic freezer on top plus a side-by-side for the main one (the side by side was about $1200 so not an uber-expensive one).

My washer and dryer are 7 years old. I was told that the thing that breaks on my washer is a life-ending repair...it's in excess of $900 with parts and labor. The home warranty would cover the repair or replacement. It's an HE front loader so replacement would be pricey and they no longer make the color, so the peds/dryer wouldn't match if I just got a new washer. Comparable replacement is about $1000.

I know getting the home warranty would be operating out of fear. But I am afraid that we'll have a major home repair and major car repair in the same month and it would be hard to come up with the cash for all of it. We don't use credit cards so cash is the only option. Maybe I should start an appliance repair fund instead...but then I've got to get the A/C warranty through the A/c co. Too risky not to be covered there with our summers. We haven't been through a summer w/o multiple A/c issues and all of them we new or close to it!